SILVER SPRING, MD. — Capital One has provided a $50.5 million loan to repay an existing construction loan on Fenwick Apartments, a Class A, six-story apartment community in Silver Spring, a little over six miles north of Washington, D.C. Capital One provided the three-year, floating-rate loan to the borrower, Insight Property Group. The loan’s initial term is interest-only. Two optional one-year extensions have amortization on a 30-year schedule utilizing a 3 percent interest rate. Built in 2014, Fenwick Apartments consists of 310 units, including 39 affordable units, and is located within walking distance to the Washington Metropolitan Area Transit Authority’s Silver Spring station. Community amenities include a pool deck with cabanas, clubroom, billiards, TV gaming area and an outdoor living room with a fire pit. The community was 94 percent occupied as of July.
WASHINGTON, D.C. — Toll Brothers Inc. has begun construction on Union Place, a 525-unit apartment development located at 200 K St. N.E. in Washington, D.C.’s NoMa district. The property is a joint venture development between Toll Brothers’ subsidiary, Toll Brothers Apartment Living, and AECOM Capital. The 14-story development will include a rooftop pool, penthouse lounge, an outdoor courtyard and a fitness center with a rock climbing wall. Union Place will also feature a business lounge, pet salon and children’s play room. The community is expected to open for residency in the spring of 2018.
SARASOTA, FLA. — Capital One Financial Corp. has provided a $162.5 million senior secured credit facility for Palm Garden Healthcare. The Sarasota-based company owns a total of 1,931 beds across 14 skilled nursing facilities and an assisted living facility. The company also operates home care agencies and provides outpatient therapy. Palm Garden locations can be found in cities throughout Florida, including Aventura, Clearwater, Gainesville, Jacksonville, Largo, Ocala, Sun City Center, Orlando, Pinellas, Port St. Lucie, Tampa, Vero Beach, West Palm Beach and Winter Haven. The credit facility consists of a real estate term loan, a capital expenditure line of credit and an asset-based revolver. Palm Garden will use the proceeds to refinance existing debt and provide capital to expand and improve its facilities. Mclean, Va.-based Capital One is a leading provider of financial services to the healthcare industry, with over $11 billion in total outstanding balances. — Katie Sloan
Don’t worry about challenging a property tax value that is less than the taxpayer’s purchase price, right? Wrong! There are numerous factors that distinguish a purchase price from a taxable assessed value, and the failure to closely review an assessment can cost a property owner dearly. The legal standard for determining property tax values can differ from state to state, but it is generally equivalent to fair market value. That is the probable price that the property would bring in a voluntary, arms-length transaction between a willing and knowledgeable buyer and seller, in an open and competitive market, with neither party being under undue duress, as of the valuation date. While it is possible for a purchase price to be the same or similar to market value, there are many instances where the two deviate. Here are some common examples: Related Parties Sales A sale is not an arms-length market transaction if it occurs between related parties and isn’t exposed to the open market. A sale between a company and its subsidiary, for example, may not reflect fair market value. Fee Simple vs. Leased Fee For property tax purposes, fair market value is most often based on the fee simple …
SANDY SPRINGS, GA. — Bluerock Residential Growth REIT Inc. (BRG) has purchased the Nevadan Apartments, a 480-unit apartment community located in Sandy Springs, for $68.3 million. BRG purchased the asset in a joint venture transaction with the Carroll Organization. BRG invested $23 million in the transaction and sourced a $48 million senior loan for the acquisition and renovation. The Carroll Organization is a 10 percent stakeholder in the joint venture. Built in 1990 near I-285 and GA 400, Nevadan Apartments features a clubhouse, resort-style swimming pool, poolside grill/lounge, 24-hour fitness center, tennis courts and underground parking. Units average nearly 1,100 square feet. Bo Moore, Dan Phelan and John Weber of ARA Newmark represented the seller, AION Partners, in the transaction.
MIAMI BEACH, FLA. — Madison Capital has acquired a retail and parking development located at 2000 Collins Ave. in Miami Beach’s South Beach district for $57.3 million. The property features a six-story parking deck and about 40,000 square feet of retail space leased to luxury retailers and upscale restaurants. The property is part of a mixed-use development built in 2010 that houses the Boulan South Beach hotel and occupies an entire city block between 20th and 21st streets and Collins and Liberty avenues. Newmark Grubb Knight Frank was the sole broker of the deal. Dockerty Romer arranged a five-year, $30.3 million acquisition loan through Wells Fargo on behalf of Madison Capital.
WINTER PARK, FLA. — Institutional Property Advisors (IPA), a division of Marcus & Millichap, has brokered the $29 million sale of Calibre Bend Apartments, a 212-unit multifamily community located at 3924 Calibre Bend Lane in Winter Park, a suburb of Orlando. Built in 1987, Calibre Bend features a clubhouse and leasing center, business center, resort-style swimming pool, a lighted tennis court and a car wash station. Units include built-in bookcases, full-size washers and dryers and private balconies or patios. Steve Witten, Frank Carriera, Victor Nolletti and Michael Regan of IPA represented the seller and procured the buyer, which plans to upgrade the property’s interiors.
WASHINGTON, D.C. — Trammell Crow Co. (TCC) has signed a long-term lease deal with the Federal Election Commission for nearly 100,000 square feet of office space at Sentinel Square II, a 280,000-square-foot office building located at 1050 First St. N.E. in Washington, D.C. The Federal Election Commission will occupy the top four floors of the building in November 2017. TCC owns Sentinel Square II with joint venture partners Cottonwood Partners and a subsidiary of a private real estate fund advised by Crow Holdings Capital-Real Estate. The LEED Silver-certified building is part of a 1.3 million-square-foot office development in Washington’s NoMa district. John Mowery and Eric Roberts of GSA and Jae Lee and Will Ruppe of JLL represented the Federal Election Commission in the lease deal.
MANASSAS, VA. — Iron Mountain Inc. has begun construction on its 83-acre data center campus in Manassas. The Boston-based information management services firm has selected Kessinger/Hunter & Co. as a development partner for the first 150,000-square-foot data center, which is expected to open in summer 2017. Kessinger/Hunter’s team of Chuck Hunter, John DeHardt and Kevin Curtin will oversee the building development and land infrastructure improvements. The development team includes JE Dunn Construction Group and Burns & McDonnell Engineering Co. UMB Bank provided construction financing to Iron Mountain for the project, and Bank of Blue Valley provided financing for the land infrastructure. The campus will include at least four individual colocation facilities and feature 60 megawatts of capacity for its tenants.
Historically overlooked along the East Coast, Millennial migration has symbolized the dawn of a new day in Charm City. The recent influx of a budding dynamic workforce to Baltimore’s urban core neighborhoods has driven the fourth largest increase in college-educated young professionals amongst metro areas nationwide. These young professionals followed substantial job migration resulting in a paradigm shift from Washington, D.C., and other major Mid-Atlantic employment centers. Baltimore’s labor market has demonstrated year-over-year gains since 2010. As of March 2016, Baltimore metro-area non-farm employment totaled 1.4 million, up 2.6 percent over the past year, as compared to 2 percent growth nationally over the same period, according to data from the U.S. Bureau of Labor Statistics. The professional and business services sector contributed the largest gains since March 2015, adding 13,500 jobs to Baltimore’s work force, representing a growth rate of 6 percent over the prior year. The recent surge in employment has driven sustained demand for rental housing, pushing vacancy rates to historic lows and placing upward pressure on rents. Despite its rapid ascension, Baltimore continues to benefit from its proximity to other East Coast cities, which have experienced economic expansion as well, with Baltimore remaining the most affordable of …